Galveston Federal District Court Judge Grants Motion to Remand

On July 1, 2013, a United States District Court Judge in Galveston granted Plaintiff’s Motion to Remand an insurance subrogation case, with Eggleston and Briscoe acting as local counsel, sending the case back to state court where originally filed. Focusing on the citizenship of the Plaintiff insurance syndicate’s managing agents, the Defendant sought to remove the case to federal court, asserting that complete diversity existed between the parties. The Court disagreed, finding that the individual underwriters subscribing to the syndicate, and not the managing agents, were the real parties in interest and it was their citizenship at the time liability attached which was relevant for diversity purposes. The pleadings and an affidavit showing one underwriter had common citizenship with the Defendant was sufficient to show a lack of the necessary diversity between the parties, resulting in remand.


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E&B Successfully Defeats Motion to Remand in Dallas Federal Court

Weber Paradise Apartments, LP. v. Lexington Insurance Company, et al.; Civil Action No. 3:12-CV-5222-L

On May 23, 2013, in a widely reported ruling favorable to an insurer and its adjusters, a U.S. District Court Judge denied the insured’s Motion to Remand a first party property insurance case to state court. The Plaintiff initiated suit in Texas state court alleging breach of contract, bad faith and various statutory violations against its insurer, its insurer’s independent adjusting company, and that company’s individual adjuster. In finding that the individual adjuster was improperly joined, the Court applied Texas pleadings standards and held that Plaintiff failed to plead specific facts which would support the theories of recovery stated in Plaintiff’s petition. The Court specifically noted that “[t]here is no fit between the unclear and conclusory allegations in the Petition and Plaintiff’s theories of recovery. Even with a liberal reading of the operative allegations of the Petition, the court has to guess, speculate, and strain to determine whether a reasonable basis exists to predict that [the individual adjuster] might be liable to Plaintiff on the claims as pleaded.”

You can view the full text of the Court’s order HERE

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E&B obtains dismissal of suit arising from dispute concerning ownership of geophysical services company involved in seismic monitoring of hydraulic fracturing.

E&B partners Bill Eggleston and Ray Gregory obtained the dismissal of all claims pending against their clients in a Houston federal court proceeding. E&B’s clients, former shareholders in the company, had been sued after they complained that the company purchased their shares under a stock repurchase agreement for less than full value and prior to full disclosure by the company as to a potential sale of company shares at a price twenty times the price paid to E&B’s clients.

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Bill Eggleston Elected to Fellows of the Texas Bar Foundation

November 14, 2012: William J. Eggleston III has been elected to membership in the Fellows of the Texas Bar Foundation. Fellows of the Foundation are selected for their outstanding professional achievements and their demonstrated commitment to the improvement of the justice system throughout the state of Texas. Election is a mark of distinction and recognition of Bill’s contributions to the legal profession.

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